1. The Field of the Invention
Implementations of the present invention relate to systems for electronically transferring funds based on one or more PIN configurations that can be set up by an account owner.
2. Background and Relevant Art
During recent years, the use of cash in financial transactions has been increasingly replaced with various forms of electronic payment. For example, credit cards and debit cards are now commonly used by consumers to make purchases, or to otherwise authorize the transfer of funds to merchants. Such electronic forms of payment have become widely used for many reasons, including convenience and the ability to maintain an electronic record of transactions.
In order to enable electronic payment, a bank or another financial institution typically establishes an account for a consumer and issues a card that enables a consumer to conveniently authorize funds to be drawn from the account. The account is generally associated with an account number that uniquely identifies the account. Often, the account number is printed on the face of the card issued to the consumer and may also be encoded in a magnetic strip on the card. In order to execute a transaction using the account, the consumer ordinarily presents the card to a merchant, who makes a copy of the account number written or encoded on the card. The merchant ordinarily verifies that the cardholder is authorized to make a purchase using the card by requiring the card holder's signature, or by receiving a 4-digit personal identification number (PIN).
In particular, signatures traditionally represent a first line of defense to prevent the unauthorized use of credit and debit cards by persons other than the rightful account holder. The cardholder's signature can be seen as evidence of the identity of the person using the card. Unfortunately, signatures can frequently be forged by unauthorized persons. Moreover, merchants sometimes do not carefully verify that the signature presented by a person using a card matches the authorized signature. There are also many commercial environments in which signatures cannot be obtained, such as automated teller machines, telephone commerce, self-serve gasoline pumps, and Internet and other online transactions.
By contrast, the 4-digit PIN is supposedly known only by the cardholder, and its use by a person using the card generally verifies that the person is an authorized cardholder. One recently developed version of the traditional PIN verification is called a “Chip-n-Pin” system. The Chip-n-Pin system generally involves a credit or debit card with a PIN embedded and encrypted on an electronic chip. The system prohibits all requested transactions with the given credit or debit card unless the person using the card enters the correct 4-digit PIN, rather than simply a signature. Some estimate that this system will be cost-effective despite a fairly expensive initial set up. Unfortunately, thieves have recently become increasingly adept at discovering 4-digit PIN information. For example, it is somewhat common for people to choose a 4-digit PIN based on some easily identifiable personal information, such as the account owner's (or family member's) birthday in forward or reverse order.
In addition to these deficiencies, signature or PIN verification systems still add little benefit for “card not present” transactions, such as credit or debit transactions taking place over telephone, Internet, or other networks. In particular, many such transactions require no other independent verification other than just the credit or debit card number and expiration date. Thus, many consumers are hesitant to transmit their account numbers over open networks. In particular, some fear that their account numbers will be intercepted, while others are reluctant to divulge their account numbers and PINs to persons who are essentially strangers.
While encryption technology has been used to reduce the likelihood that credit and debit card numbers can be intercepted from the Internet during transmission, security techniques that would recently have been foolproof are now subject to breach. Thus, the difficulty of preventing the unauthorized use of credit or debit cards has made many consumers hesitant to use such forms of payment over the telephone, Internet, or other communication networks, despite the rapid increase in the availability of commerce over such networks.
Other problems associated with traditional accounts relate to how the account owner can allow the account to be used by a friend or family member. For example, a given account owner may want to provide a child with access to a credit account when the child goes away to school, or goes on a vacation. The account owner, at the same time, however, may want to configure how the account is used in terms of spending limits. Typically, the account owner can issue a secondary card to the child, but has few or no provisions for setting the card up with prescribed spending limits, much less limits on the types or numbers of transactions for which the secondary card can be used. In another example, the account owner may want to set the account up with several individual accounts, such as can be used to pay one or more bills, without having to leave the entire limit of the card open to the relevant entity.
Accordingly, an advantage can be realized with systems, methods, and computer program products that provide account owners a greater degree of security and control over the use of their accounts in electronic commerce purchases.